What is Melon?

The drive of this blog post is to succinctly explain what Melon is and how it works in a sanely non-technical manner for those of a fiscal background. It will besides provide bare definitions for some of the technical terms that shouldn ’ thyroxine be avoided, and will act as a scaffolding platform for those who wish to dig deep into the complexities of the system. * The be subject is subjugate to change as intelligent and protocol design evolves over time. This is a living text file, and any feedback is very a lot appreciated ! therefore, let us begin our travel down the rabbit hole…

Description

In the simple of terms, Melon can be thought of as a system of tools that enables participants to set up, wangle and invest in digital assets and have management strategies that exist within a customisable, predefined ruleset. The system itself is decentralised, and minimises the necessity for reliance. You can imagine it as a toolbox for anyone who has access to digital assets that require management .

Components

There are several important components that make up the Melon system :

• The Protocol: The agreed logic behind the system of tools, consisting of a mandatory “vault” that securely holds digital assets, and optional “modules” that allow Melon funds to meet the differing needs and requirements of individual fund managers. Once the vault and modules are assembled together, they form a Melon fund.
• The Portal: A graphical user interface in your browser (Chrome, Firefox etc) that allows participants to access and interact with the protocol.
• The Melon Token (MLN): Gives protocol design rights to participants in the Melon ecosystem and acts as an incentive mechanism for those participants to continue engagement over time.
• The Ecosystem: Made up of all the differing participants and technologies that interact with and are affected by the Melon system.

Definitions

Before we forge ahead, here are some simpleton yet significant definitions ( feel free to skip ahead if you already consider yourself a blockchain wizard ) :

Protocol

A protocol can be thought of as an agreement between participants in a system on a standard way to interact with each other. A good example is SMTP, the standard e-mail protocol that allow us to send messages to and from each other .

Cryptoeconomics

A formal discipline that studies protocols governing the production, distribution and consumption of goods and services in a decentralized digital economy. Cryptoeconomics is a practical science that focuses on the design and characterization of these protocols. Vlad Zamfir, Researcher — Ethereum Foundation

Blockchain

A blockchain is a magic trick calculator that anyone can upload programs to and leave the programs to self-execute. The stream and all former states ( history ) of every course of study are constantly publicly visible, and carry a very strong cryptoeconomically secured undertake that programs running on the chain will continue to execute in precisely the way that the blockchain protocol specifies. Vitalik Buterin, Chief Scientist — Ethereum Foundation

Smart Contract

chic contracts are contracts with the terms directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralised blockchain network. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a cardinal authority, legal system, or external enforcement mechanism. They render transactions traceable, crystalline, and irreversible where appropriate. Investopedia

DApp

DApp is an abbreviated form for decentralize application. A DApp has its backend ache contracts running on a decentralised peer-to-peer network. contrast this with an app where the backend code is running on centralized servers. A DApp can have frontend code and drug user interfaces written in any speech ( precisely like an app ) that can make calls to its backend. furthermore, its frontend can be hosted on decentralized storage such as Swarm or IPFS. Joseph Chow, Developer— ConsenSys

Web 3.0

A reimagination of the sorts of things that we already use the Web for, but with a basically different model for the interactions between parties. information that we assume to be public, we publish. information that we assume to be agreed, we place on a consensus-ledger ( blockchain ). information that we assume to be individual, we keep secret and never uncover. Dr Gavin Wood, CTO & Founder — Parity Technologies

Protocol Token

Digital tokens that are governed by a gull protocol. The rules of the protocol are enforced by the underlying blockchain engineering. They are by and large not linked to any “ centralised ” entity or any “ traditional ” real-world assets. Mona El Isa, CEO & Founder — Melonport

Traditional Asset Token

Digital tokens that represent a “ traditional ” asset, such as collateralised decree currency ( e.g Tramonex ’ s GBP nominal on Ethereum, Decentralised Capital ’ s Euro token ), or valued metals ( Digix ’ s token representing gold ), or company equity ( Otonomos & t0 ). These assets are hush subject on traditional fiscal and legal systems. Mona El Isa, CEO & Founder — Melonport That concludes the important definitions, now let’s continue with Melon itself!

The Protocol

The Melon protocol is a solicitation of ache contracts that form a blockchain-based protocol for digital asset management. It is initially built on the Ethereum platform, but will be available on many blockchain platforms in the future. It enables participants to set up, wield and invest in digital asset management strategies that exist within a customisable and predefined ruleset in an open, competitive and decentralized manner. Melon can be used to manage both the newly emerge asset class “ protocol tokens ” ampere well as traditional assets that are starting to migrate across to blockchains as “ traditional asset tokens ’. In more detail: 1. The Melon protocol allows a investment company coach to set up an asset management fund with predefined parameters at a much reduced price compared to traditional fund structures. These parameters are dictated in smart contracts and enforced/secured by the blockchain protocol on which they reside. 2. It ensures that the coach operates the fund within those specify parameters, protecting investors from many potential issues that are prevailing in traditional fund structures. In a manner, you can think of the protocol as being technology where, when specified, regulation is adhered to by nonpayment ( for more information on this, check out our “ Hedge Fund Scandal ” series Part 1 & Part 2 ). 3. It lowers barriers to entry making it cheap and much simple to set up a fully audited, transparent fund on the blockchain. Standardised fund calculations make it easy to build and contribution the fund ’ s track phonograph record and track tax requirements. 4. Allows you to invest in other funds, or allow others to invest in your fund. Participants do not necessarily have to know or trust a investment company coach in order to manage their money — managers are wholly bound by the stipulate parameters of the Melon fund.

Vault

Each fund structure consists of a non-negotiable “ vault ” ( which becomes custodian ), and a optional “ modular ” element. The standardization of the vault in every Melon investment company is what allows for the real clock time investment company calculations and audits to occur. besides, the vault acts as a foundation for modules to be built upon, as each module will be compatible with every vault, and every Melon fund by extension. The vault is designed to be extremely secure, and keeps the potential attack surface for Melon funds angstrom little as possible .

Modules

No two funds are the lapp, and the modules that plug into the vault are what give Melon investment company managers the abilities to meet the person needs and requirements of each fund. The module classes are broken down into the following themes :

• Data Feeds: Serves real-world data for fund calculations
• Universe: Pre-defines a set of assets the fund manager can trade in (such as digital tokens like Augur Rep)
• Risk Management: A set of rules to restrict a fund manager’s behavior
• Exchanges: Connect the fund to different public exchanges for trading purposes
• Rewards: Setting management and performance fees for the fund
• Participation: Invest/redeem
• Compliance: Allows funds to easily comply and meet requirements for various jurisdictions

A diagram showing how the “Vault” and “Modules” can be assembled together to form a fund so, by assembling a collection of these modules together with a vault, you have a amply functioning, smart-contract bounce asset management fund. Investors can review the fund ’ s smart-contract modules and decide whether they are happy with the rules to which the fund director is bound by, before investing .

Useful Links/Further Reading

The Portal

The Portal is a web-based graphic drug user interface that can be used by Melon participants to well access and engage with the smart contracts that make up the Melon protocol. It can be thought of as a decentralized application, or DApp. The Portal allows participants to set up their store, select the modules of choice, then deploy fund structure to the Ethereum blockchain. once deployed, the Portal can then be used to manage their fund as is required, such as buying and selling assets for the fund to manage, or investing and redeeming value held by the fund . It works by connecting immediately to the Ethereum blockchain, which is why users distillery require access blockchain clients. Participants plug their blockchain clients into the Portal ( such as Parity, Geth, MetaMask etc ) which then allows them to interact with it as is required. What ’ randomness interesting about this is that the portal vein is very just a visual image of the data that exists on the blockchain combined with a bit of genius that helps execute the Melon protocol fresh contracts based on the fund managers desires. It is the blockchain clients ( and consequently the user ) who is always in broad control of the management activity — there is no prerequisite of hope from us !

White Label

While the Portal is a meaning partially of Melon, any entity that wished to plug into the Melon protocol could practicably create their own “ version ” of the Portal that could be good tailored to the specific habit case of the type of investment company ( s ) they wish to manage. Should they wish to, companies can use their brand and their reputation to white-label the Portal, perform their own security audits, customize any extra bits they may need and provide any extra off-chain services for scalability of privacy. A permissioning layer may besides be added, if needed ( e.g. KYC/AML ). This is the smasher of unfold reference software, and will help with Melon ’ s compatibility with permissioned and consortium focused blockchains .Listen to our Chaiman and CTO,Reto Trinkler demo the Melon Portal!

Useful Links/Further Reading

Ethereum Client/Browser pages

The Melon Token (MLN)

The Melon token “ MLN ” is a core part of the Melon protocol, and is designed to provide a “ use and political right ” to the Melon software. The token itself is a smart contract that lives on the Ethereum blockchain .

Melon token functionality

Political

• Voting on monetary policy: Whilst Melonport will determine the initial inflation rate, token holders should have a say in adjusting MLN inflation up or down (within a range).
• Voting on technical design: Anyone can propose a new technical design to modify, add or remove elements from new versions of the protocol. Token-holders and investors will have a say in whether new versions are added or not.

Usage

• In terms of usage functionality, transaction (licensing) fees will initially be set at zero with the possibility for token holders and investors to later to vote on introducing fees.
• Any performance or management fees earned by the Manager will require a conversion into Melon token before they can be paid out to the Manager. This would mean that Managers could use the Melon protocol for free, but would need to use the Melon token to withdraw any earnings. A more in depth blog on invest/redeem (participation)is planned for coming weeks.

Issuance

A maximum of 1,250,000 “ MLN ” will be created during the contribution periods before the protocol is deployed to the live network. After the completion of the 2 year development workshop ( ~Feb 2019 ), either the MLN token will be disinflationary, or potentially the proceeds of the second contribution period will be used to fund the ecosystem activities on an ongoing basis ( including module exploitation ), meaning inflation would not be required. This is so far to be decided, and we are researching both options to see what would be best for the long term achiever of the Melon ecosystem .

Distribution

40 % issued in Feb 2017 Contribution Period, 40 % is expected to be issued in 2018 Contribution menstruation, 12 % held by founders, advisors and partners, and 8 % held by Melonport AG .

Useful Links/Further Reading

The Ecosystem

The Ecosystem encompasses… Everyone, even you, the lector ! We see anyone and anything that interacts with Melon in some means as being function of the ecosystem. Of course, some entities are much more prevailing than others, but our goal here is to keep it as open and arsenic accessible as possible for any value creators who may wish to get involved as a player. In this final examination section of the Melon explainer, we ’ ll lecture about the participants in the ecosystem nowadays, and how that might look in the future .

Melonport AG

Behind Melon is the private company, Melonport AG. Melonport is building the open-source Melon protocol, Portal, and is the issuer of the MLN Token. It is besides responsible for providing ecosystem and community support, such as starting and maintaining social events and forums, or even assisting budding module developers in getting their modules ready and audited for usage by fund managers .

Fund Managers

These are the people/companies/foundations etc that put together Melon funds and wield assorted assets within them. They pick and choose the proper modules for their usecase, and compete against each other ( if they wish to ) for a position on the Melon fund leaderboard. They will be Melon keepsake owners sol that they can use Melon for their requirements, and may besides wish to use the tokens to vote on the future of Melon itself.

Module Builders

Module builders put together tools for funds to use. For model, one faculty builder might be a technically adequate to law firm who puts together a faculty for fund conformity in Singapore, another builder might represent a decentralized asset exchange, and provides a gateway for Melon fund users to trade their assets through their order book. They receive Melon tokens based on the usage and complexity of their modules .

Related Companies/Entities

These are groups that provide extra digest or services to the Melon ecosystem, but not necessarily as faculty builders or fund managers. An case could be Parity or MetaMask, who both provide Ethereum clients that allow users to plug their Ethereum accounts into the Melon portal, and manage their funds that are held in the protocol. Another exemplar could be Oyente. Oyente is a tool for finding bugs and security system issues in smart contracts. Melonport is presently funding Oyente as a english stick out for both module developers and the Ethereum community as a whole to use .

Feedback?

As previously mentioned, this is a exist document, and we will continue to update it as Melon evolves over time. If you as a reader have any particular feedback about the way this has been written and would like to help us improve it, please contact us at team @ melonport.com — we ’ vitamin d love to hear from you !

source : https://ontopwiki.com
Category : Finance